Correlation Between Uniswap Protocol and OriginTrail
Can any of the company-specific risk be diversified away by investing in both Uniswap Protocol and OriginTrail at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Uniswap Protocol and OriginTrail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniswap Protocol Token and OriginTrail, you can compare the effects of market volatilities on Uniswap Protocol and OriginTrail and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Uniswap Protocol with a short position of OriginTrail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniswap Protocol and OriginTrail.
Diversification Opportunities for Uniswap Protocol and OriginTrail
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Uniswap and OriginTrail is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Uniswap Protocol Token and OriginTrail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OriginTrail and Uniswap Protocol is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Uniswap Protocol Token are associated (or correlated) with OriginTrail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OriginTrail has no effect on the direction of Uniswap Protocol i.e., Uniswap Protocol and OriginTrail go up and down completely randomly.
Pair Corralation between Uniswap Protocol and OriginTrail
Assuming the 90 days trading horizon Uniswap Protocol is expected to generate 2.26 times less return on investment than OriginTrail. But when comparing it to its historical volatility, Uniswap Protocol Token is 2.5 times less risky than OriginTrail. It trades about 0.09 of its potential returns per unit of risk. OriginTrail is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 26.00 in OriginTrail on August 27, 2024 and sell it today you would earn a total of 63.00 from holding OriginTrail or generate 242.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniswap Protocol Token vs. OriginTrail
Performance |
| Timeline |
| Uniswap Protocol Token |
| OriginTrail |
Uniswap Protocol and OriginTrail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniswap Protocol and OriginTrail
The main advantage of trading using opposite Uniswap Protocol and OriginTrail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniswap Protocol position performs unexpectedly, OriginTrail can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OriginTrail will offset losses from the drop in OriginTrail's long position.| Uniswap Protocol vs. Staked Ether | Uniswap Protocol vs. EigenLayer | Uniswap Protocol vs. EOSDAC | Uniswap Protocol vs. BLZ |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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